First Patient Implanted in pSivida European Pancreatic Cancer Study

BOSTON & PERTH, Australia--(BUSINESS WIRE)--Global bio-nanotech company pSivida Limited (NASDAQ:PSDV)(ASX:PSD)(Xetra:PSI)
today announced that the first patient has been implanted with BrachySilTM
for the treatment of inoperable pancreatic cancer at Guys and St Thomas’
NHS Foundation Trust Hospital in London, a major center for cancer
therapy in the United Kingdom.

“We believe that the first trial in man of
BrachySilTM for the treatment of inoperable
pancreatic cancer represents a significant next step to bringing an
effective treatment for an aggressive cancer that presently has a very
low survival rate”

The treatment delivers BrachySilTM directly to
a tumor in the pancreas via endoscopic ultrasound (used to assist in
locating the delivery point). BrachySilTM is a
novel oncology product that is comprised of a combination of BioSiliconTM
and the isotope 32Phosphorus, a proven anti-cancer therapeutic. The
targeted and localized nature of the product could potentially provide
oncologists with an effective and user-friendly treatment for this
disease which has a high unmet clinical need.

Pancreatic cancer has one of the lowest cancer survival rates (five year
relative survival rate of approximately 5%) with 85-90% of patients
being diagnosed with the inoperable form of the disease. There is
significant clinical and market demand for effective therapies to treat
this aggressive form of cancer. According to (a)GLOBOCAN, there were
over 230,000 new cases and nearly as many deaths from pancreatic cancer
worldwide in 2002. Approximately 50% of these new cases were in North
America and Europe.

The primary objective of the six-month clinical study is to determine
the safety of the image-guided implantation of BrachySil™.
Efficacy, as determined by computerized tomography scanning of the tumor
size and overall survival, will be secondary endpoints. The trial is
being conducted in both Europe and Asia with a second clinical center at
the Singapore General Hospital and the National Cancer Center Singapore.
The findings will provide a platform for further multicenter efficacy
and safety trials.

Pancreatic cancer is the second clinical indication for BrachySilTM,
currently in Phase IIb clinical trials for the treatment of inoperable
primary liver cancer. A Phase IIa study in inoperable primary liver
cancer was completed in July 2005 and showed BrachySil™
to be well tolerated. All patients experienced a decrease in the size of
their tumors, with some experiencing complete tumor regression.

“We believe that the first trial in man of
BrachySilTM for the treatment of inoperable
pancreatic cancer represents a significant next step to bringing an
effective treatment for an aggressive cancer that presently has a very
low survival rate,” said Dr. Roger
Brimblecombe, CEO and Executive Chairman of pSivida Limited. “This
trial expands our clinical development program for BrachySil™,
our novel oncology product, into an additional solid tumor indication
for which current therapies are very inadequate”.

(a)GLOBOCAN is a worldwide database of cancer incidenceand mortality rates.

NOTES TO EDITORS:

pSivida is a global bio-nanotech company committed to the biomedical
sector and the development of drug delivery products. Retisert™
is FDA approved for the treatment of uveitis. Vitrasert®
is FDA approved for the treatment of AIDS-related CMV Retinitis. Bausch
& Lomb owns the trademarks Vitrasert® and
Retisert™. pSivida has licensed the
technologies underlying both of these products to Bausch & Lomb. The
technology underlying Medidur™, a treatment
for diabetic macular edema, is licensed to Alimera Sciences and is in
Phase III clinical trials.

pSivida owns the rights to develop and commercialize a modified form of
silicon (porosified or nano-structured silicon) known as BioSilicon™,
which has applications in drug delivery, wound healing, orthopedics, and
tissue engineering. pSivida’s subsidiary,
AION Diagnostics Limited is developing diagnostic products and the
subsidiary pSiNutria is developing food technology products both using
BioSilicon™.

pSivida’s intellectual property portfolio
consists of 70 patent families, 74 granted patents and over 290 patent
applications. pSivida conducts its operations from offices and
facilities near Boston in the United States, Malvern in the United
Kingdom, Perth in Australia and Singapore.

pSivida is listed on NASDAQ (PSDV), the Australian Stock Exchange
(PSD) and on the Frankfurt Stock Exchange on the XETRA system (GermanSymbol: PSI. Securities Code (WKN) 358705). pSivida is a founding
member of the NASDAQ Health Care Index and the Merrill Lynch
Nanotechnology Index.

The Company's largest shareholder and a strategic partner is QinetiQ, a
leading international defense, security and Technology Company, formed
in 2001 from the UK Government's Defence Evaluation & Research Agency
(DERA). QinetiQ (QQ.) was instrumental in discovering BioSiliconTM
and pSivida’s strong relationship with
QinetiQ includes access to its cutting edge research and development
facilities.

This document contains forward-looking statements that involve risks and
uncertainties. The statements reference potential products, applications
and regulatory approvals. Although we believe that the expectations
reflected in such forward-looking statements are reasonable at this
time, we can give no assurance that such expectations will prove to be
correct. Given these uncertainties, readers are cautioned not to place
undue reliance on such forward-looking statements. Actual results could
differ materially from those anticipated in these forward-looking
statements due to many important factors including: the failure of the
company to successfully close a new issue of convertible notes; the
failure of the Company to obtain the requisite shareholder approval to
issue the new convertible notes; failure to obtain shareholder approval
for the issue of shares underlying the ADS conversion and the warrant
issues under the new convertible notes; our inability to raise
additional funds at favorable terms or any terms; our inability to repay
the amended notes and new convertible notes; issues relating to share
registration in the U.S. that may delay our registration; our inability
to develop proposed products, including without limitation, in the drug
delivery, wound healing, orthopaedics, and tissue engineering,
diagnostics and food technology fields; failure of our evaluation
agreements to result in license agreements; failure to develop
applications for BioSilicon™ due to
regulatory, scientific or other issues; failure to complete negotiations
for new centers for the BrachySil™ Phase IIb
clinical trial for inoperable primary liver cancer; failure of our
discussions with the FDA for BrachySil™ to
continue or to lead to FDA approval; failure of the BrachySil™
Phase IIb clinical trial for inoperable primary liver cancer to
determine the optimal dose, provide key safety data or support future
pivotal efficacy trials or product registration or approval; failure of
the BrachySil™ primary liver programme that
is in Phase IIb clinical trials to provide a valuable platform for the
development and commercialization of BrachySil™
for pancreatic cancer and other indications; failure to commence
Phase IIa BrachySilTM trials for the
treatment of pancreatic cancer; failure of the findings of the
pancreatic cancer Phase IIa trial to provide a platform for further
multicenter efficacy and safety trials; failure of there to be
optimization and standardization between our two pancreatic
cancer study centers; failure of the results of the Retisert™
for DME trial to be a good indicator of the results of pSivida’s
ongoing Phase III Medidur™ for DME
trial; failure of the Medidur™ trials in DME
to show a very similar improvement in visual acuity and diabetic
retinopathy severity score as Retisert™ for
DME; failure of Medidur™ to release
fluocinolone acetonide at the same rate as Retisert™;
our inability to recruit patients for the Phase III Medidur™
for DME trial. Other reasons are contained in cautionary statements in
the Annual Report on Form 20-F filed with the U.S. Securities and
Exchange Commission, including, without limitation, under Item 3.D,
"Risk Factors" therein. We do not undertake to update any oral or
written forward-looking statements that may be made by or on behalf of
pSivida.